The effect of risk management on the performance of shopping malls in Nairobi county
Risk management practices can facilitate reduction in earnings volatility. Reduction of Shopping malls exposure to risks will enhance their performance. Improved risk management in shopping malls will certainly require a clear understanding of the challenges they face. There are no local studies on the effect of risk management on performance of shopping malls in Nairobi. It is therefore evident that there is a gap in literature and this informs a research to be conducted to examine the relationship between risk management practices and the performance of shopping malls in Nairobi. The general objective of the study was to evaluate risk management on the performance of shopping malls in Nairobi. This study adopted a descriptive research design. The population of this study consisted of the 24 shopping malls in Nairobi County in Kenya that were licensed by the County government of Nairobi. A census approach was used; this is because detailed information on shopping malls is easy and economical to get since the population is small. The study used primary data which was quantitative and qualitative in nature. The questionnaire was administered to the managers of the various shopping malls as they understand the effect of risk management to performance of the shopping malls. The data collected through questionnaires was tabulated and analyzed using Statistical Package for the Social Sciences version 20 (SPSS v.20) and results tabulated and analyzed using descriptive statistics. The data collected was analyzed using multiple regression analysis: the relation of one dependent variable to multiple independent variables. The study found that that risk management has significant effect on the performance of shopping malls in Nairobi County. The study concludes that the risk management practice most frequently adopted risk identification. Others include risk analysis, risk evaluation, risk treatment. The study recommends that the management of the shopping malls in Nairobi should have an effective risk management practices. This will help to identify internal and external risks which are likely to cause a significant increase in the budget, disruption of the schedule or financial performance problems.